CZ is still not happy with the way Terra handled last week’s situation as he believes the crash could have been avoided if the team had acted swiftly.
Changpeng “CZ” Zhao, the CEO and founder of world’s largest cryptocurrency exchange Binance, has been vocal about the Terra crash, since the unfortunate incident befell the company.
The Binance CEO has disagreed with the TerraForm Labs team on different occasions despite the trading platform having a significant investment in the plummeted Terra token LUNA.
Despite weighing in on the Terra situation in the past few days, CZ published a new article today, slamming the TerraForm Labs team for not moving swiftly to save the ecosystem tokens from becoming valueless.
Recall that UST lost its peg to the dollar and crashed significantly as a token that its developers pulled the rug on investors.
CZ’s Recent Comment on LUNA’s Crash
Speaking about the crash of UST, CZ noted that the entire incident could have been avoided if only the Terra team had quickly used its Bitcoin reserve when the stablecoin’s de-peg was at 5%.
According to CZ, the Terra team called its Bitcoin reserve to action when UST was almost beyond redemption and has already crashed over 98%.
“After the value of the coins had already crashed by 99% (or $80 billion), they tried to use $3 billion to do the rescue. Of course, this didn’t work,” CZ noted.
He noted that while the plunge did not look like a scam to him, he felt it was a stupid decision to use the Bitcoin reserve when things were out of control.
CZ added that one of the lessons learnt from Terra’s late decision to use its Bitcoin reserve on time is that people should “always be operationally extremely responsive.”
Aside from being slow in using its Bitcoin reserve to save the situation, CZ said the Terra team caused major panic by not frequently communicating with its community, which could have preserved the trust users had for the project.
“Lastly, I have mixed feelings about the revival plans provided by the Terra team. But as I said, regardless of my personal feelings, we will be here to support the community’s decision,” CZ said.
Recall that CZ joined the Terra community to call on the TerraForm team to buyback or burn LUNA tokens in order to bolster its value.